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Thematic Quality Portfolio

The KAR Thematic Quality Portfolio is a thematic quality portfolio that invests in high-quality companies purchased at attractive valuations. It is a high-conviction strategy that utilizes a bottom-up fundamental research approach to identify what we believe are the best companies at the most attractive prices within the high-quality universe.

Highlights
Asset Class
Thematic Quality
Primary Index
S&P 500® Index
Inception Date
January 1, 2023
Holdings Range
20-35
Sector Constraint
Seek broad diversification, but no sector constraints
Non-U.S. Holdings
Up to 20%
Portfolio Turnover
25% - 35%

Top Five Holdings

As of June 30, 2026
Company Percent of equity (%)
BBB Foods 13.7
Fair Isaac 9.6
GigaCloud Technology 8.3
Figure Technology Solutions 8.0
Venture Global 7.8
Total 47.4

Source: SS&C GWP™ and FactSet Research Systems. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Numbers may not always add up due to rounding.

Sector Diversification

As of June 30, 2026
KAR Thematic Quality
S&P 500® Index
Communication Services
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Real Estate
Utilities
0%
10%
20%
30%
40%
50%
0%
25%
50%

Source: SS&C GWP™ and FactSet Research Systems. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. The sector information represented above is based on GICS sector classifications.

Portfolio Characteristics

As of June 30, 2026
KAR Thematic Quality S&P® 500 Index
Gross Margin—Past 5 Years 46.3% 49.4%
Capital Expenditures (as % of Sales) 14.8% 9.6%
Sales Per Share Growth—Past 2 Years 19.5% 11.7%
Sales Per Share Growth—Past 5 Years 13.8% 11.6%
Debt/EBITDA 2.4x 1.0x

Source: SS&C GWP™ and BNY Mellon. This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Thematic Quality fact sheet. Other principal consultant firms may use different algorithms to calculate selected statistics. Estimates are based on certain assumptions and historical information. Returns may be affected by currency fluctuations. Past performance is no guarantee of future results.